Fiat Chrysler to spin off Ferrari

Reuters is reporting that Fiat Chrysler said on Wednesday it would spin off luxury carmaker Ferrari and list a 10 per cent stake for the iconic brand on the market.

The move would be a first step in raising capital for the company’s massive $61 billion growth plan.

News reports say the carmaker’s board had mandated its management to complete the spin-off in 2015. Reuters said the remaining 90 per cent would be distributed among FCA shareholders.

Ferrari shares could be listed in the United States and possibly on a European exchange.

“As we move forward to secure the 2014-2018 business plan and work toward maximizing the value of our businesses to our shareholders, it is proper that we pursue separate paths for FCA and Ferrari,” FCA chief Sergio Marchionne said in a statement.